Market Summary for June 4, 2025
Today's S&P 500 Performance: Outlook Affects CrowdStrike Shares Negatively, Dollar Tree Stock Drops
Wednesday, June 4, 2025, saw a mixed bag for major U.S. equities as job creation by private employers hit a two-year low in April. This weighed on the S&P 500, which eked out a meager 0.1% gain, while the Nasdaq and Dow saw more pronounced movements, with the former adding 0.3% and the latter declining 0.2%.
The day's most notable mover was ON Semiconductor (ON), which surged 6.1% following CEO Hassan El-Khoury's remarks on the recovery in demand. GlobalFoundries (GFS) also made waves, announcing plans to invest over $16 billion in U.S. chip production, partnerships with notable players like Apple (AAPL) and General Motors (GM).
On the opposite end of the spectrum, Dollar Tree (DLTR) shares took a 8.4% nosedive, with the discount retailer citing tariffs as a potential weight on profitability in the current quarter. Despite a strong first-quarter performance, Dollar Tree's second-quarter adjusted earnings per share could plummet by as much as 45-50% year-over-year due to tariff pressures.
CrowdStrike Holdings (CRWD) shares slumped 5.8% after the cybersecurity firm's quarterly revenue forecast fell below consensus estimates. Despite this, several research firms have boosted their price targets on CrowdStrike shares, highlighting the growing need for cyber defense as companies adopt artificial intelligence applications.
Elsewhere, Constellation Energy (CEG) stock slid 4.3% following its announcement of a 20-year agreement to sell nuclear power to Meta Platforms (META). Citi analysts downgraded Constellation Energy stock in response, citing limited upside following the recent rally and potential implications for future power contract negotiations.
For more in-depth analysis on these stories and others, check out Investopedia's coverage of today's trading.
Side Note:Dollar Tree's Q2 2025 earnings projections indicate a significant impact from tariffs. The company expects its second-quarter adjusted EPS to drop by as much as 45-50% compared to the same period last year due to higher tariffs on imported products [1][3]. Despite a strong first-quarter performance, Dollar Tree's stock price has suffered following this announcement [3][4]. The company has already incurred a projected $70 million increase in the cost of goods sold for the second quarter due to the 145% tariff rate on certain Chinese products [3]. However, Dollar Tree remains optimistic about recovering earnings in the second half of the year by mitigating most of the incremental margin pressure from tariffs and other input costs [1][2].
- ON Semiconductor's stock rose by 6.1% due to CEO Hassan El-Khoury's optimism about demand recovery.
- GlobalFoundries announced an investment of over $16 billion in U.S. chip production, with partnerships with tech giants like Apple and General Motors.
- Dollar Tree's shares decreased by 8.4%, with the discount retailer citing tariffs as a potential impediment to profitability in the current quarter.
- CrowdStrike Holdings' shares dropped by 5.8%, following a revenue forecast below consensus estimates, but research firms have increased their price targets, emphasizing the growing importance of cyber defense in the era of AI.
